The first half of this year has not been good for many industries, especially the casino industry. Globally, the number of casinos that were able to remain in operation dropped to almost nothing and Macau, which has lived primarily off of gambling, was no exception. Once a casino mecca that gave gamblers the feeling of being a kid in a candy store with too many options, the city became a ghost town because of COVID-19. Recovery has started, but it will take several years for revenue levels to normalize. As all casino operators in Macau are reporting major losses, SJM Holdings has chimed in, presenting its numbers for the first half of the year. The final tally is dismal but, if analysts are correct, there’s a silver lining in the near future.

According to a filing with the Hong Kong Stock Exchange, SJM’s net revenue fell 74.4% across the first six months of the year, primarily due to the impact caused by the coronavirus. The loss amounted to $182.2 million, which is a stark contrast to the $216.7 million net gain it reported for the same period last year. EBITDA (earnings before interest, taxes, depreciation and amortization) also fell, dropping down into the red.

In the half, net gaming revenue came in at $550.8 million, while EBITDA was -$126.93 million – a year ago, it was $268.3 million on the plus side. VIP gross gaming revenue (GGR) dropped 81.6% to around $107.58 compared to $584.3 million in the first six months of last year. According to SJM CEO and vice-chairman Ambrose So Shu Fai, “SJM’s first-half results reflect the severe contraction in travel and tourism caused by the Covid-19 pandemic. In this environment, we strive to control our running costs at a prudent level.” If SJM can get its new Grand Lisboa Palace in Cotai up and running, which it hopes to have ready by the end of the year, it will give the company a huge boost.

The good news, according to analysts with Sanford Bernstein, is that the GGR market share controlled by SJM increased in the first half. Vitaly Umansky, Kelsey Zhu and Tianjiao Yu wrote in an analysis of the company, that its market share “surged to 30.3 percent in the second quarter, up from 13.3 percent in the first quarter this year,” adding, “This is largely attributed to the local mass business on the [Macau] peninsula in which SJM has a stronger position than peers. This share gain is an anomaly of the current market.”